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4 December 2012
On UK energy policy there are two jockeys on the horse which can only lead to one outcome - more confusion says GMB
GMB, the union for energy workers, commented on reports that the government plans to build up to 30 gas fired plants.
Gary Smith, GMB National Secretary for Energy, said"On UK energy policy there are two jockeys on the horse which can only lead to one outcome - more confusion.
It is madness to burn more gas to produce electricity when wholesale prices are on an upward trajectory. Gas prices could go up 30% in the next few years - probably five years or so. Burning gas for electricity will only force up prices further.
Also gas fired power stations are not making any money at the moment. It is nonsense to say there is a huge appetite amongst energy companies to build more gas fired plants given that the current economics just don't add up.
There are also reports that government plans to set up a new nationalised Gas Board to develop new gas fields. This is in addition to the new nationalised Central Electricity Purchasing Board (CEPR) announced last week to guarantee prices to electricity generators. We are seeing the partial re-nationalisation of the energy industry by the Tories who privatised it."